Instant $800 Tax Rebate?

[Mr. Clean]

well i just read in the AJC that it is indeed just an advance on our tax return for next year. and since thats the deal... i dont really even get back much more that $600 anyway so basically i will get nothing back next year on taxes... maybe a couple hundred bucks vs. $1000 or so.

i think a lot of people will get a check in the mail and be like "holy sh*t this is awesome" then when they file for taxes next year they will forget to add this money to their income and not be taxed for it and then get audited. but i am kinda on the side of most of the political advisors right now that we need to focus on a long term solution such as the fair tax and not on a quick fix that will not really help because the relief check is not even going to come until june. if the gov't would give america scott-free money within the next week to maybe even a month then this would be an extreme boost in moral and eventually the economy but i think the gov't is a day late a dollar short if you will.

[Barefoot]

well i just read in the AJC that it is indeed just an advance on our tax return for next year. and since thats the deal...

thats the info ive been waiting to hear.

[skillzilla]

This is NOT an advance on your 2008 tax return, although I can understand how someone could construe it that way. Don't take the AJC's word for it, read it for yourself:

"In 2008, taxes would be cut from 10 percent to zero percent on the first $6,000 dollars of taxable income for individual taxpayers and the first $12,000 of taxable income for couples. Taxpayers could receive rebates of up to $600 for individuals and $1,200 for couples. A minimum of $300 per person and $600 per couple would be available to those with at least $3,000 of earned income. This relief would be available to everyone with adjusted gross income less than $75,000 for singles and $150,000 for married couples filing jointly. It will be phased out for taxpayers above those income thresholds."

http://www.whitehouse.gov/news/relea...0080124-4.html

What this means is you will not be paying taxes on the first $6,000 you make in 2008, but instead of not taking it out of your check, the government will be giving you a rebate check for the taxes you paid. This differs from a tax refund in that a refund comes from you paying in too much tax over the previous year, taxes that you didnt owe, causing the government to owe you money (which no one should get anyways if you play your cards right). The tax rebate is the government waiving taxes on some of your wages and giving you the taxes you paid, that you OWED, back. Just because your tax return may be smaller next year does not make it the same thing, as most people have to PAY taxes at the end of the year.

Don't get me wrong though it is still crap and I am 100% against it.

[skillzilla]

Think about it like this, if you have no kids and claim 0, and make only $6,000 a year, then this will be your entire tax return for next year. If not, then your'e good to go.

For someone making, say, $40,000 this year, $34,000 will still be taxed like normal, and you will probably pay more in taxes on that $34k than you should, and will still get a big return back in 2009.

It is only the g-o-v waving taxes on your pay, not advancing the taxes you havent paid yet.

[Mr. Clean]

hmm... ok well that sounds a little more beneficial but i still think its just not going to happen soon enough to have the desired effect. but hey... they're trying i suppose... this could be Bush's big folley or a moment of greatness in his leaving office

[Barefoot]

this could be Bush's big folley or a moment of greatness in his leaving office

na big folly is troops coming home. ill get up the $600 for that hell might even give them extra money to bring them home asap.